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CEO of UTI Worldwide: Out-sourcing is like eating out at a restaurant

Mr. Roger MacFarlane said during port2port conference that You can buy your ingredients at a store and cook the meal according to the chef's recipe or just go out to a resaurant and won't worry about cooking and cleaning
05.03.08 / 00:00
Mr. Roger MacFarlane
05.03.08
Mr. Roger MacFarlane

Mr. Roger MacFarlane said during port2port conference that You can buy your ingredients at a store and cook the meal according to the chef's recipe or just go out to a resaurant and won't worry about cooking and cleaning
 
Mr. Roger MacFarlane surprised those present at the Port2port convention with a story of a fish and a shark who get along and play together in the big ocean, and revealed that this story was written by the kidnapped soldier Gilad Shalit. The message of the story is, said Mr. MacFarlane, that even in the logistics market, the fish and the shark must learn to get along together.
 
Mr. MacFarlane said that today's world of logistics needs to be a world in which the various service providers rely on their colleauges for the benefit of the end consumer.
 
Today, Mr. MacFarlane said, the logistical supply chain is very complex, since there are many more players involved in the gigantic global network. There is the additional fact that currently, there are unique products which are tailored-made specifically for the customer.
 
One of the results of out-sourcing is that currently, many companies do not purchase the plants where they produce their products. This causes a situation where these companies "move" their production process from country to country according to cost of production. An additional result of this process is that the assembly process of the final product is greatly influenced by the logistical chain of the parts that make up the complete product – such as in the case of the Boeing aircraft manufacturer - various parts of whose planes come from various countries in the world. This means that the supply of the plane itself is dependent on the supply of the parts, which influences the speed of the supply.
 
At the end of his speech, Mr. MacFarlane compared the supply chain to lunch. You can buy the ingredients at a store and cook the meal according to the chef's recipe, or you can go to a restaurant where someone cooks for the customer and even cleans up after him.

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